17778 Real Estate Initial Public Offer Methodology6cp; Two days x 2 blocks
There are course requisites for this subject. See access conditions.
Real Estate Initial Public Offerings (IPO) introduces students to the broad range of requisite skills needed to produce a comprehensive IPO document suitable for either a listed or unlisted IPO. The subject covers:
- Overview of managed Investment Scheme legislation
- Real estate asset class research methodology appropriate for an IPO
- Alternative sources of capital funding namely, equity and debt
- Ascertaining the appropriate level of debt given the specific earnings/revenue risks associated with either the pool of assets or single asset that forms the cornerstone investment
- Alternative Return on Equity (ROE) outcomes under alternative debt level ratios
- Forecast income growth from either the single asset or pool offsets given its WALE (Weighted Average Lease Expiry) profile, tenant covenant and rent review profile
- Alternative debt structures in terms of tenor/pricing scenarios
- Deriving the substantiated revenue/earnings forecast for the IPO over an initial 2 year period.
Detailed subject description.